ABC Company Free cash flow (unlevered) for 2020 Forecasted free cash flow (unlevered) for 2021 FCF growth rate (unlevered) WACC Perpetual (unlevered) free cash flow growth rate (g) Year end net debt Diluted shares outstanding 4,000,000 4,600,000 D1 15% (For forecasting free cash flows) 10% 5% (For terminal value calc) 5,000,000 (Reduces enterprise value) 2,000,000 Complete the DCF model below: PV of Free Cash Flow FV Forecasted Free Cash Flow (4,600,000 1.154) Discount Factor WACC 1.10n N FV discount factor 1 2 3 4 Terminal Value* Total (sum of PVs = enterprise value) Year end net debt =Equity value Diluted shares outstanding Equity value per share (*) FV of terminal value = (yr 5 cash flow 1.05%)/(WACC - perpetual growth rate) PV of terminal value use year 5 discount factor